Connect with us


Japan Shares Fall on Yen Gain



  • Japan Shares Fall on Yen Gain

Japanese shares fell for a second day after the yen touched the highest since November while Treasuries held gains that had been spurred when President Donald Trump targeted reworking America’s trade relationships. The dollar pared declines that had come after Treasury Secretary nominee Steven Mnuchin commented on currency strength.

The Topix Index fell 0.4 percent as of 9:46 a.m. in Tokyo, while equities advanced in Australia. Futures on the S&P 500 Index were little changed after the benchmark declined Monday, when European shares fell to the lowest level of 2017. Gold retreated after touching the highest since November and 10-year Australian yields fell a second day.

While investors have been looking for details on campaign promises to boost growth and government spending, much of the incoming administration’s initial pronouncements targeted trade or pushed companies to invest more inside the U.S. Mnuchin flagged concerns about China’s trade and exchange rate policies and said the administration would focus on infrastructure spending. President Trump promised a “very major” border tax and signed an executive order to withdraw the U.S. from the Trans-Pacific Partnership deal. He announced on the weekend he’d seek to renegotiate the North American Free Trade Agreement.

“The first couple of days of the new presidency have seen the rhetoric weighted toward protectionist policies while little detail is yet available on stimulus measures,” said Ric Spooner, Sydney-based chief analyst at CMC Markets Asia Ltd. “Unwinding free trade agreements and imposing border taxes is seen by markets as a negative for the dollar, which is not being helped by statements from the U.S. Treasury secretary about it being overvalued.”

Money managers will be dissecting earnings from some of the world’s largest companies this week with Alphabet Inc. and Alibaba Group Holding Ltd. among those reporting results.

Here are the main moves in markets:


  • The Nikkei 225 Index fell 0.4 percent. Futures on the FTSE China A50 advanced 0.2 percent, while those on the Hang Seng Index were little changed.
  • The MSCI Asia-Pacific Index was little changed.
  • Australia’s S&P/ASX 200 Index rose 0.5 percent, after a two-day slide, while New Zealand stocks retreated 0.2 percent and South Korea’s Kospi lost 0.1 percent.
  • The S&P 500 Index fell 0.3 percent to 2,265.20. The Dow Jones Industrial Average slid to 19,799.85, clinging to a 0.2 percent advance in 2017.
  • The Stoxx 600 benchmark index of European shares fell 0.4 percent to the lowest close since December.
  • The MSCI Emerging Market Index rose 0.1 percent to add to its 1 percent jump on Monday.


  • The yen declined 0.2 percent to 112.87 per dollar, after jumping 1.7 percent the previous session. The Australian and New Zealand dollars were little changed after each advanced more than 0.2 percent to reach levels last seen in November.
  • The Bloomberg Dollar Spot Index slid 0.2 percent to the lowest since Dec. 8, after dropping 0.7 percent on Monday. It has fallen for four straight weeks, the longest retreat since February.


  • Australian bonds gained in the wake of Treasuries, with the yield on 10-year notes down four basis points to 2.72 percent.
  • The yield on the 10-year Treasury was steady at 2.40 percent after it declined seven basis points Monday; bonds had extended their rally after Trump vowed “a very major border tax” on imports in a meeting with business leaders.


  • Gold was down 0.1 percent after climbing 0.7 percent Monday and touching a two-month high of $1,220.26 an ounce.
  • West Texas Intermediate crude oil rose 0.3 percent to $52.89 a barrel. It slid 0.9 percent the previous session after U.S. drillers added the most rigs in more than three years, making it difficult for OPEC to drain global oversupply.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and, with over a decade experience in the global financial markets.


Nigeria’s Diaspora Remittances Decline by 28 Percent to $16.8 Billion in 2020



US dollar - Investors King

Nigeria’s diaspora remittances declined by 27.7 percent or $4.65 billion from $21.45 billion in 2019 to $16.8 billion in 2020, according to the World Bank Migration and Development report.

A critical look into the report shows remittances to sub-Saharan Africa declined by 12.5 percent in 2020 to $42 billion. This was largely due to the 27.7 percent recorded by Africa’s largest economy, Nigeria, which accounted for over 40 percent of the total remittance inflows into the region.

The report noted that once Nigeria’s remittance inflows into the region are excluded, remittances grew by 2.3 percent in 2020 with Zambia recording 37 per cent.

Followed by 16 percent from Mozambique, 9 percent from Kenya and 5 percent from Ghana.

The decline was a result of the global lockdown that dragged on the livelihood of most diaspora and unclear economic policies.

In an effort to change the tide, the Central Bank of Nigeria (CBN) introduced a Naira 4 Dollar Scheme to reverse the downward trend and boost diaspora inflows into the economy.

However, the reports revealed that other external factors like insecurities, global slow down, weak macroeconomic fundamentals, etc continue to discourage capital inflows.

On Tuesday, the CBN, in a new directive, announced it has halved dollar cash deposit from $10,000 to $5000 per month.

The move is geared towards discouraging overreliance on the United States Dollar and encourage local patronage and production.

Mr. Guy Czartoryski, Head of Research at Coronation Asset Management, had said in the report, “We looked at the top 10 banks and the breakdown of their deposits showed that 40 per cent of their deposits are in dollars and it is quite astonishing.”

Continue Reading


Deposit Money Banks Reduce Dollar-Cash Deposits by 50 Percent to $5000/Month



United States Dollar - Investors King Ltd

Nigeria’s Deposit Money Banks (DMBs) have reduced the amount of United States Dollars that customers can deposit into their domiciliary accounts by 50 percent from $10,000 to $5,000 per month.

A bank official who preferred not to be mentioned confirmed the new policy to Investors King.

He, however, stated that the new policy does not apply to customers making electronic transfers as well as oil and gas companies and dollar payments into government accounts.

Checks revealed that the Central Bank of Nigeria (CBN) introduced the new policy to discourage the strong appetite for the United States Dollar, which has continued to rise.

A recent report has shown that despite persistent dollar scarcity, around 40 percent of bank deposits in the nation’s top ten banks were in dollars.

Mr. Guy Czartoryski, Head of Research at Coronation Asset Management, had said in the report, “We looked at the top 10 banks and the breakdown of their deposits showed that 40 per cent of their deposits are in dollars and it is quite astonishing.”

According to an analyst at ARM Securities Limited, Mr. Olamofe Olayemi, “this has to do with how much confidence the people have in the naira. Over time, we have seen significant depreciation in the naira.

“If you look at what happened in 2020, no one expected that the naira would be devalued twice in that year and even the outlook, this year is suggesting further depreciation in the naira.

“So, it makes sense to a lot of people to store their money in dollars. But, from the CBN standpoint, you agree with me that there is dollar scarcity.”

He, therefore, argued that the new policy might discourage financial inclusion and encourage cash outside the banking system.

Again, it is important for the flow of money to be captured in the system,” he said.

The CBN had extended its Naira 4 Dollar Scheme last week to further encourage dollar inflow into the Nigerian economy.

Continue Reading


Naira Closed at N411.25 to US Dollar at NAFEX Window



Naira Dollar Exchange Rate - Investors King

The Nigerian Naira declined further against the U.S Dollar on Tuesday ahead of the Ramadan holiday to trade at N411.25 to a single U.S Dollar at the Nigerian Autonomous Foreign Exchange (NAFEX) window.

The local currency plunged as low as N420.23 per dollar during the trading hours of Tuesday despite opening the day at N410.33/US$ before settling at N411.25 to a US dollar.

Investors on the window exchanged $98.33 million on Tuesday.

At the parallel section of the foreign exchange, Naira traded at N483 to a United States Dollar; N673 to a British Pound and N580 to a Euro.

Foreign exchange rates remained largely unchanged at the bureau de change section, with the Naira trading at N482 to a U.S Dollar; N674 to a British Pound and N584 to a Euro.

Several factors continue to weigh on the Nigerian Naira, especially with the foreign reserves hovering around record low and crude oil output not at an optimal level.

Other factors like rising inflation rate and drop in economic activity due to COVID-19 effect on the economy and lack of enough fiscal buffer to cushion the economy.

Continue Reading